Russian expressed its keen interest to finance the billion-dollar IP gas pipeline project, when Foreign Minister Hina Rabbani Khar was on a four-day visit to Moscow in February 2012, however Russian energy giant Gazprom linked this offer with awarding contract
without bidding.

The petroleum secretary further said that if the deal between Islamabad and Moscow matures, the Pakistani government would need to relax procurement rules to facilitate the IP project.

“No decision, however, has been taken yet to award the contract to Russia, but Pakistan will negotiate this deal,” he added.

Chaudhry also dispelled the perception that ICBC has totally distanced itself from the project, saying, “We have written a letter to ICBC, asking it to clear its position as financial adviser to the project.”

The federal government is looking to increase its fuel imports from various sources, including Iran, to reduce power shortages that have crippled the country’s industry and shaved percentage points off its gross domestic product growth.

The multi-billion-dollar gas pipeline aims to export a daily amount of 21.5 million cubic metres or 7.8 billion cubic metres per year of the Iranian natural gas to Pakistan.

The maximum daily gas transfer capacity of the 56-inch pipeline, which runs over 900 kms of Iran’s soil from Asalouyeh in Bushehr province to the city of Iranshahr in Sistan and Balochistan province has been estimated at 110 million cubic metres.

Current energy crisis thoroughly jolted the entire country and the federal government has been looking for different resources to meet the energy needs including import of petroleum products from India.

He further added that federal government would save 35 percent transportation charges, if once a deal between Pakistan and India for import of petroleum product matures.